Category Archives: Uncategorized

Why You Should Invest At Young Age

My upcoming 45th birthday will be my first 😉 I am pleased with the fact that my list of regrets is relatively short. But one major regret I have is not beginning my investment journey early.

When you start investing at a young age, you gain a head start, you have a high risk appetite, which allows you to take more risks without putting your ability to achieve your long-term financial goals at risk, and you have the potential to earn returns from the investments that are adjusted for inflation.

Young investors have the freedom and time to study the market, learn from their successes and failures, and grow as investors as a result. With time on their side,they have time to study the markets and hone their investing strategies. Investing is known to have a fairly lengthy learning curve.And I can vouch for it based on my experience.I have matured as an investor over the years and I am still learning.

Investing in one’s future at a young age offers a number of advantages.Sharing few learnings from my investment journey:

1.Discipline in Spending

If you start saving and investing at a young age, you will be able to control your spending later on. Here’s how it works, and I will show you.

If you want to save a predetermined sum each month from your predetermined salary, you will need to limit your outlays by making a monthly budget. Keeping a monthly budget of your spending on necessities like food, utilities, housing, entertainment, etc. is the best way to improve your spending habits. Also, after many repetitions, this easy action turns into second nature.

2.Time

When you start investing at a young age, you buy yourself more time, which is a significant advantage. If you begin investing when you are in your twenties, your wealth will have more time to grow, putting you in a better position to easily achieve all of your financial goals. If you begin investing when you are in your thirties, your wealth will have less time to grow.

3.High Risk Taking ability

Studies have shown that younger investors are more willing to take risks than their more seasoned counterparts. Adult investors typically have a conservative outlook and a preference for stability, which leads them to steer clear of high-risk investment avenues. There is an old proverb that goes, “The higher the stakes, the greater the reward.” The ability to take more risks increases the likelihood of earning handsome returns at a younger age.

4.Time Value of Money

Wish the concept was taught in school 🙁

Returns on early investments tend to increase exponentially over time. The value of one dollar, when measured against the passage of time, rises as time passes. When it comes to retirement, having made consistent investments beginning at a young age can result in significant financial rewards.

Additionally, early investment makes it easier for you to enter the world of finance at an earlier age. Your wealth will continue to increase over time. Because of your early investments, you have the ability to purchase things that others your age may not be able to afford. You will have an advantage over those people who wait until they are older before investing their money.

5.Retirement

Making investments at a young age increases the likelihood of achieving a comfortable financial position at a younger age. It is always a better idea to start putting money away for retirement when you are in your 20s rather than when you are in your 40s. Because life after retirement is currently more difficult than it has ever been, making preparations for retirement as soon as possible will result in a more enjoyable life after retirement.

Building wealth is easier if you get a head start. If you don’t have a lot of money, investing early in life can be challenging. However, you can’t sit around and wait for things to be more convenient.(There is nothing like Right time to start investing.) You should start by putting away a little bit of money. Allow your savings some time to grow.

The best choice a person can make early in life is to start investing. Don’t be shy about consulting a financial advisor or a seasoned pro like me 😉

Key Takeaways

When you invest early in life, your money has more time to compound as you reinvest your earnings.The biggest advantage a young investor has is TIME.

When you start investing early you can take on greater investment risk because you have more time to recover if things go wrong.

Uncategorized

All that you need to know about Travel Insurance

Whether it is for business trips or holiday with friends and family, traveling in India or abroad these days has become an integral part of our lives. We have become more mobile than ever before. But with the increased number of travelers and rate of travel, the occurrence of multiple travel related risks are also increasing. From misplaced luggage at airports to costs incurred due to transit delays to falling sick at foreign lands, traveling can sometimes offer a lot of inconveniences and one should be prepared! It is important to take measures and protect oneself against unforeseen circumstances so the rest of the trip goes smoothly and as planned.And who can help you in minimizing all these risks? A travel insurance policy. A comprehensive travel insurance policy offers many benefits such as medical expenses and loss or baggage. However, one can also opt for a specific policy that fits the purpose and duration of the trip.

Let’s find out more.

What does travel insurance usually cover?

A travel policy usually allows you to cancel your trip for the following reasons-injury or illness, a missed connection, or an unpredictable event such as earthquake, terror attack, etc. If your trip is derailed for one of these reasons, you’re entitled to a reimbursement for costs that are usually not refundable. It also covers medical expenses incurred during travelling. Some policies may also provide cover for other situations like medical evacuation to India, accidental death or disability benefit, losses due to flight delays or loss of documents or baggage loss and more. In addition, some even provide travel assistance in the form of legal advice or facilitating emergency cash transfers. Some insurers also provide cover for adventurous sports activities.

What travel insurance does not cover?

A common exclusion is a pre-existing illness. It refers to any medical condition that has required attention prior to travel or initiation of the policy. So, if you are suffering from an illness or condition like diabetes, blood pressure, cardiovascular problems and so on, the policy will not be covering that. Also, if complications arise from any surgery, illness or accident you sustained prior to the travel those will not be covered in most of the insurance policy. What else doesn’t it cover? Any losses incurred due to breaking foreign laws or caused due to terrorism or making frauds.

What about the cost?

The price and duration of the trip, your age, and optional add-ons–these are the factors that determine the cost of your insurance. A policy typically costs 3 to 5 percent of your trip’s prepaid,non-refundable costs. Whereas a “cancel for any reason” policy (an option provided by many) can run you 7 to 10 percent of the non-refundable cost. Some plan provisions are available only if you buy the policy within 14 days of your initial travel purchase. Some policies are more expensive if you’re older or are engaging in risky activities like bungee jumping, rock climbing, paragliding, etc.

What should I look for when picking a policy?

Consider what kind of a traveler you are and pick a policy accordingly. Say, if you are a frequent traveler (if you take more than two holidays a year), it is best to take an annual travel policy as it will be cheaper than a single trip policy. A single-trip policy is ideal for a one-time vacation or business tour! Also, if you or a family member has a medical problem that could require a cancellation,confirm that your policy includes a waiver for pre-existing conditions (this is the most common reason claims are turned down). These are few factors that you can look forward to when selecting a policy.

Where can I find a good policy?

Travel agencies offer policies that will generally cover you for the duration of your trip, but you should definitely do your homework before picking that up. Most airlines, cruise lines, and tour operators offer optional insurance (also called wholesale policies) that tend to have more exclusions.You can also go through multiple websites for reviews and compare policies. You can also buy direct through one of the travel insurance companies.

Wondering about your travel Insurance ?? Want to know more about travel insurance and plan. Feel free to write us on contact@sbsfin.com